Govt body proposes credit scheme for sick industries

Plan includes tax-linked loans, easier financing, and national commission


Our Correspondent August 09, 2025 1 min read
Govt had set a budget of Rs10 billion for the current financial year to meet the demand of Petroleum Division for the provision of subsidy to the export-oriented industries. photo: file

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ISLAMABAD:

A sub-body has proposed reviving the linked credit scheme for the restoration of sick industrial units and easing access to credit under the Pakistan Industrial Policy.

The committee also proposed revival-linked credit schemes by introducing a sales tax duty-linked loan scheme and treating fresh lending for revival as a priority. A high-level meeting of the sub-committees on the restoration of sick industrial units and ease of access to credit was held on Friday under the chairmanship of Special Assistant to the Prime Minister (SAPM) Haroon Akhtar Khan.

The SAPM emphasised that any industry failing to repay loans, closed for more than 12 months, inactive, or operating at less than 30% of its capacity is considered a sick unit.

The committee proposed that the SBP should issue an easy framework for the revival of sick industrial units. This framework would include principal haircut options, tenor extension options, adjustments in interest rates, and easier access to fresh working capital.

Additionally, banks would be given incentives and protection from audits for voluntarily participating in the restoration of sick units.

The committee also recommended establishing an Industrial Revival Commission to classify sick industrial units, create tailored recovery plans, and ensure coordination for financial and regulatory support.

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